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Managing talent in a turbulent economy
Talent
April 2009
Navigating a course through rough waters
1Managing talent in a turbulent economy – April 2009
Contents
2 Key fi ndings
3 Global economic outlook remains extremely challenging
4 Cutbacks and layoffs dominate the corporate talent agenda
5 Cuts get deeper and more diffi cult
6 Layoff survivors also feel impact of tough economy
8 Cost cutting crowds out sales and service as a key strategic priority
10 Focusing on defense: Talent priorities refl ect the rough economy
11 Recruiting down for all but experienced hires
13 Companies surveyed still recognize the need to retain and train key employees
15 Spotlight on talent and risk
18 Survey participants
20 Contacts
2Managing talent in a turbulent economy – April 2009
Key fi ndings
About the surveyThis survey—the fi rst in a three-part longitudi-nal study—was conducted for Deloitte by Forbes Insights. This fi rst edition features results from a January 2009 survey that polled 326 senior busi-ness leaders and human resource executives at large busi-nesses worldwide in the Americas, Asia/Pacifi c, and Europe/Middle East/Africa. A more detailed demographic profi le about the respondents can be found at the end of this report.
This report presents the major fi ndings of a March 2009 Deloitte survey about ways top executives and talent managers in industries worldwide are adjusting their workforces to navigate a course through the rough waters of today’s turbulent economy. The study, the second in a three-part longitudinal survey, also examines how strategic priorities and talent tactics have changed since our January 2009 survey:
• In the March survey, senior executives reported they expect signifi cant challenges to persist in the broader economy, just as they had in January, and few believe the worst is behind us.
• In response, surveyed executives are focused sharply on cost cutting, including layoffs and other austerity measures. Efforts to align company costs with today’s economic realities are now crowding out plans to keep and expand the customer base—a signifi cant change since the January survey.
• Reducing employee headcount remains the top talent priority and, over the last quarter, surveyed talent managers have shifted the criteria being used to determine workforce reductions. As layoffs get deeper and more diffi cult, even employees with critical skills fi lling key roles are at risk of losing their jobs.
• While layoffs and other belt-tightening measures dominate executive attention, surveyed corporate managers still recognize the need to retain and train key talent. Layoff survivors can expect to feel the impact of the diffi cult economy through lower compensation and benefi t levels.
• With governments taking a higher-profi le role in business, the intersection of talent and risk management and regulatory compliance has emerged as an area of rising concern for surveyed business leaders and HR executives.
3Managing talent in a turbulent economy – April 2009
Global economic outlook remains extremely challenging
Digging Deeper: Corporate leaders surveyed in Life sciences/Health care companies expressed a moderately more optimistic view about economic conditions, with just 24% suggesting the worst is still to come, compared to 32% overall.
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
As the global recession deepens, executives in every major market and across every major industry are struggling to bring corporate costs in line with falling revenues and depressed profi ts. According to the 397 international executives surveyed for Deloitte by Forbes Insights in March 2009, austerity measures occupy an increasingly signifi cant portion of management time, outranking efforts to increase sales and serve customers as top priorities now and in the coming months.
Layoffs remain widespread, as newspaper headlines attest. This survey suggests that headcount cuts are getting deeper and more diffi cult for executives and talent managers to make. These managers are struggling with how best to align their workforces with the reality of what many expect to be a prolonged downturn.
Figure 1. Executive outlook on the economy: March vs. January
58%
32%
8%
2%
64%
30%
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1%
Things are tough and will be for a while
The worst is still ahead
The worst is behind us
Don’t know
March
January
One in three executives surveyed see even tougher times ahead.
The March 2009 survey is the second edition in a three-part longitudinal study designed to examine ways executives are responding to the perilous and often unpredictable currents of today’s economy. In addition to gauging broad trends in talent management, this study also spotlights the actions companies are taking to implement and integrate talent management in their risk management and regulatory compliance operations.
In March, as in January, corporate executives surveyed clearly recognize the mounting economic challenges they face and the need to reorder their strategic priorities to survive. An overwhelming 90% of executives surveyed expect the business environment to remain depressed, with one-third predicting that still tougher times lie ahead. A mere 8% believe the worst is behind us (fi g. 1).
4Managing talent in a turbulent economy – April 2009
Cutbacks and layoff s dominate the corporate talent agenda
Figure 2. Organizations conducting layoffs
47%50%
3%
42%
49%
9%
Yes No Don’t know
Past three months
Next three months
In keeping with this grim economic outlook, cutbacks and layoffs are dominating the corporate talent agenda. Between November 1, 2008 and April 28, 2009, the 500 largest U.S. corporations announced layoffs totaling more than 544,000 workers, according to Forbes.com. But workforce reductions are not confi ned to the United States. The Organization for Economic Cooperation and Development warned in late March that the world’s 30 richest countries are facing a combined jump in unemployment of 25 million people in the current economic crisis, pushing the jobless rate to over 10% from a 2007 low of 5.6%.
This trend was clearly evident in our March survey, with nearly half (47%) of the executives questioned reporting layoffs over the last three months (fi g. 2), markedly more than those who had predicted layoffs (38%) in our January study. More than four in ten (42%) expect more layoffs to come over the next quarter, as companies struggle to “rightsize” their workforces for a weaker economy.
Companies already feeling the pain of layoffs report little relief in sight. Of the companies surveyed that experienced layoffs in the last quarter, seven out of ten (71%) expect more layoffs in the coming quarter, while only 17% of the companies that did not experience layoffs over the last three months expect to conduct them in the next three months.
Public companies, under greater pressure from shareholders to hold down costs, appear more likely to turn to layoffs than privately held companies. In the March survey, 59% of publicly traded companies reported laying off workers over the last three months, compared to 39% of privately owned companies. Half of the public companies (51%) surveyed expect layoffs over the next three months, well above the 35% of private companies.
Digging Deeper: Energy/Utility companies surveyed were the least likely to experience layoffs over the past three months (37%) and were the least likely to predict layoffs over the next three months.
5Managing talent in a turbulent economy – April 2009
Cuts get deeper and more diffi cult
Figure 3. Top criteria for making workforce reduction decisions: March vs. January
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60%
Skill capability
Past and current performance
Role necessity
Compensation level
Tenure in organization
Leadership potential
Tenure in position
Retirement proximity
Promotion potential
Business unit
Location/region
Cultural fi t
Other
March
January
The criteria used by executives surveyed in making workforce reductions has shifted signifi cantly since January, suggesting that talent managers are being forced to consider job reductions that cut deeper into their companies and are more diffi cult to make. Even employees with strong skills fi lling necessary roles are at risk in some companies.
In March, 43% of executives surveyed list “role necessity” as a key factor in making decisions about workforce reductions—a 17 percentage point drop from January. Some 47% reported “skill capability” was an important criterion in layoff decisions, compared to 55% in January. Past and current performance is no guarantee of job security, with less than half of managers (45%) reporting this as a top factor, compared to 53% in January (fi g. 3).
Digging deeper: Justifi cations for cutbacks also vary greatly by industry. Life sciences/Health care companies surveyed were much less likely to use “skill capability” (32%), “role necessity” (32%), and “past and current performance” (27%) as workforce reduction criteria, while Energy/Utility companies were much more likely to use “past and current performance” (63%) and “skill capability” (60%). Executives in the Consumer/Industrial products sector appear much less concerned with “leader-ship potential” (7%), while their counterparts at Technology/Media/Telecom companies are more concerned (23%).
6Managing talent in a turbulent economy – April 2009
Layoff survivors also feel impact of tough economy
31%
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Discretionary perks (e.g., subsidized food/beverage, subsidized parking)
Paid holidays and vacation
Tuition reimbursement
Increase
Remain the same
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Don’t know
Figure 4. Anticipated changes in retention focus over next 12 months
Employees who survive the waves of layoffs can expect to bear the pain of tough economic times. Companies experiencing layoffs are also more likely to be decreasing compensation and benefi t levels, but they are not the only ones focused on cutting costs.
By strong margins, executives surveyed reported that over the next 12 months their companies are more likely to decrease rather than increase compensation levels (25% to 15%), benefi t levels and packages (32% to 14%), and discretionary perks such as subsidized food and parking (39% to 12%) (fi g. 4). Corporate bonuses are also being pared back, with more than a third (35%) reporting they expect bonuses to decrease this year.
Digging Deeper: When it comes to reducing costs, companies in the Europe/Middle East/Africa (EMEA) region surveyed are more likely to use reductions in retirement plan contributions (25%) than those in the Americas (14%) or Asia Pacifi c (APAC) (13%).
7Managing talent in a turbulent economy – April 2009
As layoffs become more frequent and less predictable and benefi ts are curtailed, it is no surprise that employee morale remains low. More than one in three executives surveyed (36%) reported that employee morale decreased over the past three months, while 25% reported trust and confi dence in leadership declined (fi g. 5).
Th e frequency of employee communications is on the rise as executives surveyed seek to counter low employee morale brought on by an anemic economy and salary/benefi t cutbacks—34% of corporate leaders surveyed report their companies communicated more frequently with their employees over the past three months.
Increase
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Frequency of employee communications
Retirements
Trust/confi dence in leadership
Voluntary turnover (not including retirements)
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High-potential voluntary turnover (not including retirements)
Figure 5. Impact of economic climate on talent efforts over past three months
8Managing talent in a turbulent economy – April 2009
1%
Cost cutting crowds out sales and service as a key strategic priority
Digging deeper: Life sciences/Health care and Energy/Utility companies surveyed see improving top- and bottom-line performance as a lower priority than other companies—a fi nding consistent with their more optimistic overall economic outlook. Just 22% of Life sciences/Health care and 17% of Energy/Utility executives ranked it as a top priority versus 30% overall. Public companies, which must answer to restless shareholders, were more concerned (37%) about improving top/bottom line performance than privately held ones (24%).
While the overall ranking of key strategic priorities for senior executives surveyed remains unchanged since January, cutting and managing costs are now by far the primary concern of the executive suite, outdistancing other priorities by more than 20 percentage points. When asked to identify the strategic issues that currently occupy most of management’s attention, executives ranked cutting and managing costs fi rst (63%), acquiring/serving/retaining customers second (40%), and managing human capital and improving top and bottom line performance third (tied at 30%) (fi g. 6).
Although “acquiring/serving/retaining customers” ranked second in this survey as it did in January, the number of top managers who gave it a top rating dropped precipitously from 56% in January to 40% in March. Cost cutting now exceeds sales- and service-related activities
Figure 6. Current strategic issues: March vs. January highlighting signifi cant changes
63%
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Cutting and managing costs
Acquiring/serving/retaining customers
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Addressing risk and regulation challenges
Expanding into global and new markets
Capitalizing on M&A/divestiture/restructuring
Leveraging technology
Investing in innovation/research and development
Other
March
January
by a 23-point margin (63% to 40%), compared to just fi ve percentage points in the previous survey. Investing in innovation/research and development dropped by roughly half between January and March (fi g. 6).
9Managing talent in a turbulent economy – April 2009
While January’s survey revealed a mix of off ensive and defensive measures, March responses indicate executives are clearly on defense.
Digging deeper: Are executives in different regions employing different strategies to manage through diffi cult times? Yes, according to the March survey. Far more executives surveyed in the Americas (21%) are looking to leverage technology to improve operations than their counterparts in APAC (6%) and EMEA (8%). By eight percentage points, APAC companies are more focused on expanding into global or new markets than companies in the Americas. The reverse is true when it comes to capitalizing on M&A/divestiture/restructuring opportunities; 16% of executives in the Americas ranked this as a top priority, compared to 7% in APAC.
The shift to cost-cutting mode becomes more pronounced when comparing March and January results by industry. Unlike in January, executives surveyed in every industry now rank cutting and managing costs as their number one strategic priority. In March, for both Consumer/Industrial products and Technology/Media/Telecom, cutting costs displaced landing and keeping customers as their top priority (fi g. 7).
As companies shift their focus away from sales and customers, talent managers surveyed are also pulling back on training activities in this area. Roughly one in fi ve (22%) now report they are decreasing job-specifi c training in sales and customer service versus 13% in January, while the number increasing this training fell from 29% to 24%. The declining focus on sales was more pronounced among non-HR executives, with just 34% ranking “acquiring/serving/retaining customers” as a top management priority, compared to 54% in January.
The generally pessimistic economic outlook of executives surveyed and the strong emphasis on reducing costs may also be cutting into plans aimed at repositioning companies for better times ahead. While January’s survey revealed a mix of offensive and defensive measures, March responses indicate executives are clearly on defense. Other than Energy/Utility executives, no survey participant in March listed investing in R&D or developing new products as one of their top three priorities.
Figure 7. Current strategic issues by industry
Ranking
1
2
3
Consumer/Industrial products
Cutting and managing costs
Acquiring/serving/ retaining customers
Managing human capital
Life sciences/Health care
Cutting and managing costs
Acquiring/serving/retaining customers
Managing human capital
Technology/Media/Telecom
Cutting and managing costs
Acquiring/serving/retaining customers
Improving top and bottom line performance
Energy/Utility
Cutting and managing costs
Managing human capital
Acquiring/serving/ retaining customers
Developing new products and services (2-way tie)
Financial services
Cutting and managing costs
Acquiring/serving/retaining customers
Improving top and bottom line performance
10Managing talent in a turbulent economy – April 2009
Focusing on defense: Talent priorities refl ect the rough economy
Corporate executives, fi rmly in cost-cutting mode, reported that reducing employee headcount represents the top talent priority today and will remain so over the coming quarter. Nearly four in ten (39%) survey participants named reducing headcount as their top talent priority, about the same (38%) as in January. Looking forward, a slightly smaller, but still substantial minority (34%) report lowering headcount will be their top talent priority three months from now (fi g. 8).
Digging deeper: From a global perspective, EMEA companies surveyed stood out for being less focused today on reducing headcount, with only 20% currently ranking it their top talent management priority. Looking to the next quarter, these same EMEA-based companies anticipate a turn for the worse, with 35% reporting that reducing headcount will be the top talent priority over the next three months.
Headcount reductions are a higher talent management priority in some industries than in others. By a 12-point margin compared to total respondents, companies surveyed in the Financial services sector rank reducing headcount as their top current talent priority. Reducing headcount now and over the next three months ranks as a lower talent priority for Life sciences/Health care companies and Energy/Utility companies.
Top priority
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Figure 8. Current and anticipated talent priorities
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Reducing employee headcount
Retention
Training and development
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11Managing talent in a turbulent economy – April 2009
Recruiting down for all but experienced hires
Digging deeper: Given their focus on reducing headcount, it is not surprising that Financial services companies surveyed are also less focused on recruiting—with 70% ranking it their lowest priority. Life sciences/Health care companies—which are somewhat less focused on cost-cutting—report they are more focused on recruiting, with 20% rating it a high priority compared to other industries surveyed.
With many companies looking to lower headcount, recruiting remains the lowest talent priority in companies surveyed across every industry and throughout every region. Half of the executives surveyed report recruitment is currently their lowest talent priority, similar to January’s 46%, and a nearly equal number (49%) report it will remain so three months from now (fi g. 8, page 10).
New hires from college campuses can expect to feel the brunt of this hiring “freeze.” Only 15% of executives surveyed plan to increase campus hires, compared to 35% who reported they will decrease their focus on these recruits. But college seniors are not the only potential employees struggling to fi nd employment in today’s diffi cult economy. More than one in three (35%) executives reported that they plan to decrease part-time hires over the next year—a jump from 26% in January (fi g. 9).
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Figure 9. Anticipated changes in focus on recruitment over next 12 months
12Managing talent in a turbulent economy – April 2009
One group still in demand remains experienced recruits. Over the next year, 27% of executives surveyed plan to increase experienced hires, nearly identical to January’s 28%. In fact, experienced hires were the only recruitment category showing a greater increase than decrease in focus (27% vs. 24%), with campus hires, contract hires, part-time hires, and offshore/outsourced hires all seeing net declines over the next 12 months (fi g. 9, page 11).
In the latest survey, the percentage of executives who reported they planned to restructure jobs to lower costs and increase effi ciency fell signifi cantly from 52% in January to 39% in March, suggesting there may be fewer gains to be made from restructuring going forward (fi g. 10).
Divergence between HR/Talent and other company executivesIn training and development, HR executives surveyed were more likely (by 11-13 percentage points) than non-HR executives to expect their company’s focus to increase when it came to onboarding and orientation, leadership and management development, high-potential employee development, and job-specifi c training.
In recruitment, 29% of HR executives saw an increased focus on using contract hires compared to 16% of non-HR executives; similarly, 31% of HR executives indicated an increased use of part-time hires compared to 20% of their non-HR colleagues.
Figure 10. Area of increased focus on reducing costs and employee headcount over next 12 months: March vs. January
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Restructuring jobs
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March
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13Managing talent in a turbulent economy – April 2009
Companies surveyed still recognize the need to retain and train key employees
Even in a time of layoffs, benefi t reductions, and other belt-tightening measures, corporate executives surveyed recognize the imperative to retain and train key talent. Six out of ten executives ranked retention either #1 or #2 among current talent priorities, identical to the percentage ranking training and development #1 or #2 (fi g. 8, page 10).
In order to retain employees, executives surveyed are increasingly focused on three areas: redeploying workers to divisions and jobs in higher demand (31%), redirecting outsourced work to in-house employees (27%), and increasing the use of fl exible work through telecommuting and reduced work weeks (23%) (fi g. 4, page 6).
Despite widespread cost-cutting, talent managers and corporate executives surveyed remain committed to developing the top talent and future leaders within their companies. When asked to anticipate how their company’s focus on training and development will change over the next year, 33% reported they would increase training and development for high-potential employees—slightly less than in January (37%), but still the highest of any category. Leadership and management development continued to rank second, but declined from 36% in January to 27% in March (fi g. 11).
Digging Deeper: Life sciences/Health care and Energy/Utility executives surveyed are more likely to have a high level of concern over losing key employees, while Financial services fi rms are much less likely to be concerned about the issue.
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Figure 11. Anticipated changes in focus on training and development over next 12 months
14Managing talent in a turbulent economy – April 2009
Th e tough economic climate and strong emphasis on reducing headcount has done little to calm executive fear that rival companies may try to poach their most talented employees.
One possible reason for the continued emphasis on employee retention and training is the recognition by companies surveyed that they must make the most of current employees instead of recruiting talent from the outside. One-third (34%) of executives report they plan to recruit more critical talent given current economic conditions, compared to 40% in January. The percentage of executives who report they are investing in building new skills in their workforces remained relatively high at 41%, but fell from 48% in January (fi g. 12).
The tough economic climate and strong emphasis on reducing headcount has done little to calm executive fear that rival companies may try to poach their most talented employees. In the March survey, 44% reported their concern about competitors recruiting high-potential employees was either very high or high (compared to 43% in January) and only 19% reported their concern was very low or low (compared to 23% in January).
Figure 12. Actions anticipated due to economic climate: March vs. January
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15Managing talent in a turbulent economy – April 2009
Spotlight on talent and risk
The events of the past year have demonstrated that risk and compliance issues can endanger even highly regulated companies with the most sophisticated risk management practices. At a time when all organizations are experiencing intense scrutiny from lawmakers, regulators, and shareholders, corporate risk and compliance efforts must continue to be an integral part of doing business. Talent managers have an opportunity—indeed, an obligation—to play a front-line role in ensuring that the importance of risk management is properly communicated to employees and that employees have the training, skills, and resources they need to manage risk effectively.
With enhanced scrutiny comes increased responsibility to build risk management capabilities into every aspect of a company. This raises some critical questions: Is risk management really ingrained into a corporation’s culture? Are employees aware of their role in addressing risk in the organization? Do they have the time and ability to fulfi ll that role? Have they received the appropriate cues from the organization on why they need to do it, typically referred to as the “tone at the top”?
As part of Deloitte’s March survey, executives were asked whether they agreed or disagreed with a series of statements designed to gauge the progress companies are making at the intersection of talent and risk management and whether they have the tools to get the job done.
Overall, there was strong agreement among executives surveyed that risk management is ingrained in business decisions and is viewed by employees as an integral part of doing business, not just an administrative burden. To most survey statements, approximately 20-25% strongly agreed and 40-50% agreed, with 10% or fewer disagreeing. However, there were a few revealing responses in the data:
• In terms of industry groups, Life sciences/Health care companies surveyed appear to be focusing more attention on instilling responsibility for risk management across their talent pool—46% of executives at these companies strongly agreed that “Responsibilities for risk management are clearly defi ned in all job descriptions and performance expectations.” In other industry segments, the number strongly agreeing with that statement was 20-26% (fi g. 13).
Figure 13. Respondents who strongly agree that responsibilities for risk management are clearly defi ned in all job descriptions and performance expectations (by industry)
46%
26%
24%20% 20%
Life sciences/Health care
Financial services Consumer/Industrial products
Technology/Media/Telecom
Energy/Utility
Overall strongly agree (28%)
16Managing talent in a turbulent economy – April 2009
• By a 16-point margin (84% to 68%), surveyed CHROs and HR Directors appear more likely to agree that their companies periodically review attitudes toward risk management and compliance than their colleagues in other areas of the company.
• Respondents were asked if they agreed with the statement that compliance is an integral part of doing business, not simply an administrative burden. One quarter of sales/marketing executives and an equal percentage of those in CFO/Treasurer/Comptroller positions disagreed with that statement, compared to fewer than 10% who shared that sentiment overall. As far as industries were concerned, by a 2:1 margin, Life sciences/Health care executives were more likely to share this disagreement than their counterparts in other industries.
• By a 2:1 margin compared to total respondents, executives surveyed in CFO/Treasurer/Comptroller roles were more likely to disagree that employees in their fi rms knew how to identify fraud and other behaviors that could endanger their companies (fi g. 14).
• Surveyed companies in the Americas appear to be more likely to encourage whistle blowing related to compliance. More than one-third (35%) of Americas’ respondents strongly agreed that “Employees and business partners can raise issues in good faith about how things are done in the business without fear of retaliation,” compared to 19% of APAC respondents and just 11% of EMEA respondents (fi g. 15).
Figure 15. Respondents who strongly agree that employees and business partners can raise issues in good faith without fear of retaliation (by region)
35%
19%
11%
Americas APAC EMEA
Overall strongly agree (22%)
Figure 14. Respondents who disagree that employees at all levels know how to identify behavior such as fraud that could endanger the enterprise (by job title)
7%
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8%6% 6%
8%
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Board Member
CEO/President/Managing Director
CFO/Treasurer/
Comptroller
CIO/Technology
Director
CHRO/Human
Resources Director
Other C-level Executives
Other HR or Talent Executives
SVP/VP/Director
Head of Business
Unit
Head of Department
Overall disagree (9%)
17Managing talent in a turbulent economy – April 2009
Executives surveyed generally agreed their companies are preparing employees to manage risk and compliance issues, but the survey suggested a few areas where organizations may be falling short:
• Executives surveyed in fi nancial positions (CFO/Treasurer/Comptroller) were twice as likely to disagree that new employees and current employees in new positions are receiving effective orientation about their risk responsibilities.
• Leaders at not-for-profi t and government organizations surveyed identifi ed more shortcomings in their risk and compliance efforts than executives at for-profi t fi rms. By an 11-point margin, these executives were more likely than total respondents to disagree that their organizations’ performance incentive systems reinforce desired risk and compliance behavior.
Most executives surveyed appear to believe their companies have adequate resources to handle risk management and compliance issues, with a few notable exceptions:
• By 13 percentage points, executives at Life sciences/Health care companies were less likely than total respondents to agree that they had adequate internal talent to address risk/regulatory issues (fi g. 16).
• By a 24-point margin, sales/marketing executives surveyed were less likely to agree their companies had adequate internal risk/compliance talent; by 18 percentage points they were less likely to agree that risk/compliance professionals are getting the training they need; and, by that same 18 point margin, they were less likely to agree that risk/compliance requirements are integrated into their business routines.
Risk management will remain in the headlines over the coming months, and the intersection between risk and talent will continue to be a critical issue for all organizations. While the data from the March survey suggests executives surveyed currently have a positive view of the risk and compliance efforts at their companies, we believe the intersection of talent and risk management may be a critical “leading indicator” of potential challenges in this area in the future. Deloitte will continue to monitor this issue and dig deeper to uncover potential challenges as we move forward with additional surveys.
Figure 16. Respondents who strongly agree or agree that they have adequate internal talent to address risk and regulatory issues (by industry)
56%
73% 73% 74% 75%
Life sciences/Health care
Financial servicesConsumer/Industrial products
Technology/Media/Telecom
Energy/Utility
Overall strongly agree (69%)
18Managing talent in a turbulent economy – April 2009
Survey participants
For the second edition of Deloitte’s three-part longitudinal study, Forbes Insights surveyed 397 international executives located in the three major economic regions: the Americas (33%); Europe/Middle East/Africa (33%); and Asia Pacifi c (34%) (fi g. 17).
Figure 18. Company revenues
34%
29%
17%
8%
12%
$500 million – $999 million
$1 billion – $4.9 billion
$5 billion – $9.9 billion
$10 billion – $19.9 billion
$20 billion or greater
Figure 17. Respondents by region
Americas
33%
Europe/Middle East Africa
33%
Asia/Pacifi c
34%
All companies reported revenues of more than $500 million during the most recent fi scal year, with 66% of companies above $1 billion and 20% above $10 billion (fi g. 18).
19Managing talent in a turbulent economy – April 2009
Executives surveyed were employed in senior positions in a cross-section of industries. Half held C-suite positions and 35% headed either their business unit or department. Industry sectors were split between Consumer/Industrial products (27%), Technology/Media/Telecom (20%), Financial services (14%), Life sciences/Health care (10%), and Energy/Utility (9%) (fi g. 19).
The third edition of Deloitte’s survey will be published in July 2009, with an analysis of the longitudinal data from all three surveys to follow.
Figure 19. Company industries
Other 20%
Consumer/Industrial products
27%
Energy/Utility9%
Life sciences/ Health care
10%
Financial services14%
Technology/Media/Telecom
20%
20Managing talent in a turbulent economy – April 2009
Contacts
Global Human Capital Dr. Sabri Challah* Global Practice LeaderHuman Capital Deloitte MCS Ltd. United Kingdom +44 20 7303 6286schallah@deloitte.co.uk
Jeff Schwartz* Global Practice LeaderOrganization and Change Deloitte Consulting LLPUnited States +1 703 251 1501jeffschwartz@deloitte.com
Tim Phoenix* Global Practice LeaderTotal Rewards Deloitte Consulting LLP United States +1 512 226 4272tphoenix@deloitte.com
Margot Thom* Global Practice LeaderHR Transformation Deloitte Inc. Canada +1 416 874 3198mathom@deloitte.ca
Human Capital–Americas Michael Fucci National Practice LeaderHuman Capital Deloitte Consulting LLPAmericas and United States+1 973 602 6870mfucci@deloitte.com
Margot Thom* National Practice LeaderHuman Capital Deloitte Inc. Canada +1 416 874 3198mathom@deloitte.ca
Vicente Picarelli Regional Practice LeaderHuman Capital Deloitte Consulting Latin America and Caribbean+55 11 5186 1043vpicarelli@deloitte.com
Human Capital–Asia Pacifi c Richard Kleinert Regional Practice LeaderHuman Capital Deloitte Consulting LLPUnited States +1 213 688 3368rkleinert@deloitte.com
Lisa Barry* National Practice LeaderHuman Capital Deloitte ConsultingAustralia +61 3 9208 7248lisabarry@deloitte.com.au Kenji Hamada National Practice LeaderHuman Capital Tohmatsu Consulting Co., Ltd.Japan +81 3 4218 7504kehamada@tohmatsu.co.jp
Byung Jeon Kim National Practice LeaderHuman Capital Deloitte Consulting KoreaKorea +82 2 6676 3830bjkim@deloitte.com
P. Thiruvengadam National Practice LeaderHuman Capital Deloitte Touche Tohmatsu India Pvt. Ltd.India +91 80 6627 6108pthiruvengadam@deloitte.com
Hugo Walkinshaw Practice LeaderHuman Capital Deloitte Consulting Singapore Pte. Ltd.Singapore and South East Asia+65 6232 7112hwalkinshaw@deloitte.com
Jungle Wong National Practice LeaderHuman Capital Deloitte Touche TohmatsuCPA Ltd.China +86 10 8520 7807junglewong@deloitte.com.cn
Human Capital–EMEABrett C. Walsh Regional Practice LeaderHuman Capital Deloitte MCS LimitedUnited Kingdom + 44 20 7007 2985bcwalsh@deloitte.co.uk
Dr. Udo Bohdal* National Practice LeaderHuman Capital Deloitte Consulting GmbHGermany +49 69 97137 350ubohdal@deloitte.de
Gert De Beer National Practice LeaderHuman Capital Deloitte Consulting South Africa +27 11 806 5995gedebeer@deloitte.co.za
Enrique de la VillaNational Practice LeaderHuman Capital Deloitte S.L. Spain +34 9151 45000edelavilla@deloitte.es
Rolf Driesen National Practice LeaderHuman Capital Deloitte ConsultingBelgium +32 2 749 57 21rodriesen@deloitte.com
Christian Havranek* National Practice LeaderHuman Capital Deloitte Consulting Austria +43 1 537 00 2600chavranek@deloitte.com
Feargus Mitchell National Practice LeaderHuman Capital Deloitte MCS LimitedUnited Kingdom +44 20 7007 3698fmitchell@deloitte.co.uk
Petr Kymlicka National Practice LeaderHuman Capital Deloitte Advisory s.r.o.Central Europe + 420 2 246042260pkymlicka@deloittece.com
Gilbert Renel* National Practice LeaderHuman Capital Deloitte S.A. Luxembourg +35 24 5145 2544grenel@deloitte.lu
Ardie van Berkel National Practice LeaderHuman Capital Deloitte Consulting B.V.The Netherlands+31653733271AvanBerkel@deloitte.nl
David YanaNational Practice LeaderHuman Capital Deloitte ConsultingFrance +33 1 58 37 96 04dyana@deloitte.fr
Alexander Zabuzov*National Practice LeaderHuman Capital Deloitte CIS Russia +7 495 787 0600azabuzov@deloitte.ru
*Member of Deloitte’s Global Talent Steering Group
21Managing talent in a turbulent economy – April 2009
Global Talent Steering Group–Americas Robin EricksonHuman Capital Deloitte Consulting LLPUnited States +1 312 486 5368rerickson@deloitte.com
Marc Kaplan Human Capital Deloitte Consulting LLPUnited States +1 212 618 4421mkaplan@deloitte.com
Alice Kwan Human Capital Deloitte Consulting LLPUnited States +1 212 618 4504akwan@deloitte.com Andrew Liakopoulos Human Capital Deloitte Consulting LLPUnited States +1 312 486 2777aliakopoulos@deloitte.com David Rizzo Human Capital Deloitte Consulting LLPUnited States +1 973 602 5348darizzo@deloitte.com Christie Smith Human Capital Deloitte Consulting LLPUnited States +1 973 602 5430christiesmith@deloitte.com
Heather StocktonHuman Capital Deloitte Inc. Canada +1 416 601 6483hstockton@deloitte.ca
Gregory Stoskopf Human Capital Deloitte Consulting LLPUnited States +1 212 618 4627gstoskopf@deloitte.com
Global Talent Steering Group–Asia Pacifi c Satoshi Ota Human Capital Deloitte Tohmatsu Consulting Co., Ltd.Japan +81 3 4218 7439 sota@deloitte.com Global Talent Steering Group–EMEADr. Eddie Barrett Human Capital Deloitte MCS Ltd.United Kingdom +44 7789 006 243edbarrett@deloitte.co.uk
David Conradie Human Capital Deloitte Consulting (Pty) Ltd. South Africa +27 11 517 4207dconradie@deloitte.co.za
Kees Flink Human Capital Deloitte Consulting B.V.The Netherlands+31612344741kfl ink@deloitte.nl
Anne-Marie MalleyHuman Capital Deloitte MCS Ltd.United Kingdom +44 207 007 8075amalley@deloitte.co.uk
Gabi Savini Human Capital Deloitte Consulting (Pty) Ltd. South Africa +27 11 517 4274gsavini@deloitte.co.za
Global Mobility Gardiner Hempel Global Mobility Transformation Leader, Global Employer Services Deloitte Tax LLP United States +1 212 436 2294ghempel@deloitte.com
Andrew Hodge UK Practice Leader Global Employer Services Deloitte & Touche LLPUnited Kingdom +44 207 007 2555ahodge@deloitte.co.uk
Anne Shih Deputy Managing Partner Global Employer Services Deloitte Touche TohmatsuHong Kong +852 2852 1652annshih@deloitte.com.hk
Talent and Risk Michael Fuchs Human CapitalDeloitte Consulting LLP United States +1 212 618 4370mfuchs@deloitte.com
Timothy Lupfer Human CapitalDeloitte Consulting LLP United States +1 212 618 4523tlupfer@deloitte.com
Workplace Transformation George Bouri National Practice Leader Capital and Real Estate TransformationDeloitte Consulting LLP United States +1 973 602 5322 gbouri@deloitte.com
Martin Laws Lead Partner Real Estate SolutionsDeloitte & Touche LLPUnited Kingdom +44 207 007 7919mlaws@deloitte.co.uk
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Copyright © 2009 Deloitte Development LLC. All rights reserved.
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About the surveyThis survey—the second in a three-part longitudinal study—was conducted for Deloitte by Forbes Insights. This second edition features results from a March 2009 survey that polled 397 senior business leaders and human resource executives at large businesses worldwide in the Americas, Asia/Pacifi c, and Europe/Middle East/Africa. A more detailed demographic profi le about the respondents can be found at the end of this report.
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